Amazon just turned up the heat in the three-way battle for dominance atop ecommerce sellers, announcing more than 10 million items eligible for its new one-day delivery standard via Prime. This compares with 220,000 items available for free next-day delivery from Walmart, announced in mid-May, and 35,000 from Target ReStock.
If Amazon owns nearly half of the U.S. ecommerce market, why the need to offer one-day delivery? The reason: Its singular obsession with customer centricity. Insights abound for those able to get past the headlines. Here are three of the most important takeaways that were either overlooked or under-covered in the media frenzy.
Firing back at Amazon’s move less than three weeks ago, Walmart is now offering free next-day delivery to customers in Phoenix and Las Vegas, with plans to expand to Southern California within days and 75% of the U.S. population by the end of the year. Walmart’s deal is mostly free: There’s a $35 order value threshold to qualify.
No sooner had everyone mostly adjusted to the new normal of two-day delivery across the continental U.S. than Amazon raised the bar yet again, signaling a move to free one-day shipping for its 100 million-plus Prime members. Amazon will be transitioning to one-day Prime delivery throughout 2019, starting in Q2.
FedEx has created a new program to address demand for faster fulfillment of online orders by offering later pickup. Extra Hours lets retailers expand their pickup cutoff by up to eight hours to more easily offer next-day local delivery or two-day delivery anywhere in the continental U.S. via FedEx Express.
When it comes to ecommerce delivery, customer expectations are constantly rising. But just offering a wider selection of delivery options won’t necessarily ensure customer satisfaction. These three fulfillment scenarios illustrate best practices that will help ensure customer satisfaction, loyalty and repeat business.
Jetblack, Walmart’s new invite-only, personalized shopping service aimed at busy moms in Manhattan and Brooklyn, allows members to get same-day orders fulfilled by texting them in, at $50 a month. It’s the latest example of the beast of Bentonville seeking to go upmarket and out-innovate main rival Amazon.